If you’re buying a home in Boise and need a mortgage to finance your purchase, your first steps will be to find and work with a trusted Boise mortgage lender. Considering the fact that you will be tied to your mortgage for up to 30 years, you’ll want to make sure that the mortgage you take out and the lender you partner with are the right ones for you.
Taking out a mortgage may be a complex process if you’re on your own, but it can be relatively hassle-free if you choose to work with the right mortgage team. Do your homework on the mortgage process, and get familiar with the requirements. A Boise mortgage lender can help with online options for a streamlined homebuying experience.
You may already be used to buying products and even doing your banking online, so taking out a mortgage online shouldn’t be too confusing for you. In this increasingly digitally-savvy world, online lenders play a key role in filling a void that online consumers and borrowers are looking for. Plus, you can use the internet to compare mortgage lenders in Boise and the products and interest rates they offer, all from the convenience of your home.
15 Tips to Help You Find the Right Mortgage Lender
Before you start searching for a home, start by finding the best Boise mortgage lender to work with. Here are some helpful tips to do that.
Identify your main goal.
What exactly do you need out of a mortgage? Where are you at in the home buying process? Are you a first-time buyer? An empty-nester who’s retiring? Are you looking for a vacation home or an investment property? Your specific goal will determine who you should work with and what type of mortgage to take out.
Decide what type of mortgage you need
There are various types of home loans available, and each one may be better suited for one type of borrower over another. For instance, you can choose from adjustable-rate versus fixed-rate mortgages, jumbo loans, VA loans, FHA loans, and conventional loans. Each type of borrower may have different requirements, and as such, the mortgage they choose should be tailored for each situation.
Once you have an idea of what type of mortgage you would need, find a mortgage lender in Boise who can offer that to you. Then, you can get more details on that particular mortgage product to solidify whether or not it’s the one that’s best for you.
Know your credit score
Your credit score plays a crucial role in your ability to secure a home loan. A score of at least 650 will usually be required by Boise mortgage lenders for mortgage approval, though the exact number may vary from one lender to another. The higher your score, the better your chances of getting approved. You can find out how your credit score affects your mortgage and discover your current score by obtaining a copy of your credit report from one of the three major credit bureaus in the US.
Improve your credit score
If you find out that your credit score is on the lower end, find out why. For starters, make sure there are no errors on your credit report that are pulling your score down. If you find any, have them rectified immediately.
Otherwise, you may want to take some time to improve your credit score before you apply for a mortgage. You can do this by making all bill payments on time, spending no more than 20% to 30% of your credit card limit, making full credit card payments (rather than minimum payments), and avoiding new loans and credit lines until after you’ve been approved for a mortgage.
Search for reviews
Check out various review sites on the internet. If there are negative reviews that raise red flags for you, talk with the lender directly to explain why.
Luckily, mortgage lenders in Boise are required to provide total transparency when it comes to all fees associated with mortgages. Find out what these fees are before you begin the mortgage application process.
Familiarize yourself with lending rates
The current mortgage interest rate will be one of the most important components of these products, as they directly dictate how much you will have to pay over the life of your loan. A higher rate means more money out of your pocket, so you would be much better off securing a lower rate.
While your financial situation and profile will play a role in the type of rate you can get, different lenders often offer different rates, so you would be wise to compare them before choosing a particular mortgage lender.
Seek a referral
Whether you speak directly to friends, family, and colleagues, it may be helpful to get recommendations from others who have some experience with various mortgage lenders.
Use your common sense
Your mortgage lender will look at many things before determining whether you can secure a mortgage, and your debt load is one of them. More specifically, your debt to income ratio (DTI ratio) will be assessed.
If your debt load is already taking up too much of your current income, it may be tough to fit in a mortgage payment too. You’d be well-advised to pay down your debt as much as you can before approaching a mortgage lender for a home loan.
Gather your paperwork
As part of the mortgage application process, there is a lot of paperwork that you will need to submit to a mortgage lender in Boise. After all, your lender will want to verify how financially capable you are of handling a mortgage payment based on your income, assets, debts, and past financial behavior. The documents you provide can paint that picture for them.
They may ask you for a copy of your pay stubs, bank statements, letter of employment, statement of assets and liabilities, tax receipts, and so forth. Before you approach a lender, consider gathering all this paperwork first to get a leg up on the process.
Rein in your spending habits
To keep your debt in check, be sure to curb your spending habits. This means no impulse buying, and keep credit freed up on all your lines to show you can handle your money wisely.
Look at a lot of different programs
Most mortgage programs require a down payment between 3% and 20% in order to get approved. This money goes towards the purchase price of the home. The mortgage you take out, the price you pay for your home, and your financial health will play a role in exactly how much of a down payment you need. But different lenders may also have their own requirements.
Find out what your down payment obligations are and if there are any down payment assistance programs available to you that can help ease the burden of coming up with such a large amount of money.
Ask about the fees
While the interest rate is an important aspect to consider that will determine how you pay for your mortgage, there are other fees listed in your loan estimate that you should factor in as well.
Check for additional costs
Be prepared to shell out for PMI (private mortgage insurance) if your down payment is less than 20%, and to cough up cash for HOA (homeowners association) fees if you move into a community with an active HOA.
Push for expertise and customer service
Online lending has revolutionized the home buying and mortgage application process, making it much more convenient and less time-consuming. Being able to compare interest rates, submit your documents, and track the mortgage process all online helps reduce the stress and guesswork from the application process. With Sammamish Mortgage, you can take care of the entire mortgage process completely online without sacrificing quality and communication.
Loan Limit Basics
If you take out a home loan that is higher than a certain limit, your mortgage will be considered a “jumbo loan.” That’s because of loan limits, which are dollar limits placed on mortgages. For conforming loans, loan limits are caps that are placed on loans that Freddie Mac and Fannie Mae will purchase or guarantee.
For FHA loans, loan limits are dollar caps on loans that the FHA backs. VA loan limits have been eliminated. But some borrowers may still be subject to them if they currently have a couple of VA loans or have defaulted on one in the past.
Loan limits are assigned to every county in the country and usually increase at the start of every year to reflect the growth in home prices.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
Why Sammamish Mortgage?
Sammamish Mortgage is a local mortgage loan company that has been serving clients since 1992. We support borrowers all across the Pacific Northwest, including Washington, California, Oregon, Idaho, California and Colorado. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.